Independent Agencies Gain Advanced Agentic Media Buying Through New PubMatic and Untapped Growth Collective Partnership Mar 25, 2026 9:03 AM Eastern Daylight Time Independent Agencies Gain Advanced Agentic Media Buying Through New PubMatic and Untapped Growth Collective Partnership Share Small and Independent agencies can now activate custom buyer agents within AgenticOS – providing full access to data curation, premium inventory at scale, and GPU-supported infrastructure delivering more efficient and effec ...

PubMatic Inc. (NASDAQ:PUBM) is one of the best AI stocks with huge upside potential. On March 12, PubMatic and Optable partnered to integrate privacy-safe, first-party audience data into automated media buying workflows via PubMatic’s AgenticOS. This collaboration allows Optable’s ‘Audience Agent’ to work within PubMatic’s AI-driven infrastructure, enabling advertisers to discover and activate high-value audience signals from premium publishers autonomously. By using agent-to-agent communication, the par ...

This story was originally published on Marketing Dive. To receive daily news and insights, subscribe to our free daily Marketing Dive newsletter. Dive Brief: Ad-tech firm PubMatic and marketing agency Butler/Till ran a fully autonomous, end-to-end agentic campaign on behalf of the Geloso Beverage Group that reduced buy-side supply chain costs by 5.5x, according to press materials shared with Marketing Dive. The campaign, which ran in December 2025, was an industry-first in that it was planned and impl ...

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by certain officers and directors of PubMatic, Inc. related to misrepresentation of the company's business and operations [1]. Group 1: Allegations of Misrepresentation - A federal securities lawsuit claims that insiders at PubMatic misrepresented or failed to disclose material adverse facts about the company's business, operations, and prospects [2]. - Specific allegations include the failure to disclose that a major Demand-Side Platform (DSP) buyer was shifting clients to a new platform, leading to a reduction in ad spend and revenue for PubMatic [2]. - As a result of these undisclosed facts, positive statements made about the company's business and prospects were deemed materially misleading [2]. Group 2: Shareholder Actions - Shareholders who purchased PUBM shares prior to February 27, 2025, are encouraged to contact Kuehn Law for potential legal action, as there may be limited time to enforce their rights [3]. - Kuehn Law offers to cover all case costs and does not charge its investor clients, emphasizing the importance of shareholder involvement in maintaining market integrity [4].

Summary of PubMatic 2026 Conference Call Company Overview - **Company**: PubMatic (NasdaqGM:PUBM) - **Industry**: Digital Advertising Technology Key Points Financial Performance - **4Q Results**: PubMatic reported strong fourth-quarter results, exceeding expectations on both revenue and profit. Adjusted for political and DSP changes, core business revenue grew by **18% year-over-year**, representing over **80%** of total revenues [5][6] - **Emerging Revenues**: This category, which includes products like Activate and AI solutions, grew by **75%** in the quarter, up from less than **1%** of revenue three years ago to **12%** by year-end [6] - **Mobile App Growth**: Revenue from mobile apps increased by **25%** in the quarter, with a **4-year CAGR** of **15%** [7] - **CTV Revenue**: CTV, accounting for about **20%** of revenues, has seen a **CAGR** of over **50%** [7] Business Transformation - **Inflection Point**: The fourth quarter marked a significant transformation for PubMatic, broadening revenue streams and improving efficiency and profitability, setting a positive trajectory for 2026 [8] - **Agentic Advertising**: This new approach allows AI to make decisions in the programmatic ad ecosystem, enhancing efficiency and performance [10][11] Competitive Advantages - **Access to Inventory**: PubMatic has integrated with over **100,000** websites and apps, providing access to a vast amount of high-quality inventory, particularly in data-rich environments like CTV and mobile apps [12][13] - **Unified Platform**: The platform allows buyers to access various inventory sources without silos, enhancing decision-making capabilities [14][15] - **Technological Evolution**: Collaboration with NVIDIA has improved real-time data processing capabilities, reducing decision-making time from **300 milliseconds** to **10 milliseconds** [17] Market Trends - **Shift to Performance-Oriented Advertising**: There is a noticeable shift in the advertising market towards performance-driven strategies, with brands seeking measurable outcomes [22][23] - **AI Integration**: Over **40%** of code written in the past year was AI-assisted, leading to increased efficiency across various business functions [25][26] Capital Allocation and Growth Strategy - **Share Buyback Program**: Since its launch in 2023, PubMatic has repurchased over **$12 million** in Class A common shares, indicating a commitment to returning value to shareholders [35][36] - **M&A Strategy**: While M&A opportunities are considered, PubMatic remains disciplined, focusing on organic growth and strategic acquisitions that can accelerate product lines [36][37] Future Outlook - **Revenue Growth and Margins**: The company expects to see expanded margins as revenue accelerates, with a focus on efficient resource deployment [29][30] - **Upselling Opportunities**: The holistic platform allows for easy upselling across different product lines, enhancing long-term revenue potential [44][45] Additional Insights - **DSP Diversification**: PubMatic increased the number of DSPs on its platform by **50%** over the past year, reflecting a strategic shift in the ad tech ecosystem [55] This summary encapsulates the key insights and strategic directions discussed during the PubMatic conference call, highlighting the company's strong performance, innovative approaches, and future growth potential.

Core Viewpoint - Lake Street analyst upgraded PubMatic (PUBM) to Buy from Hold with a price target increase to $10 from $9.50, citing a strong Q4 performance that exceeded revenue and adjusted EBITDA expectations, marking an "inflection quarter" [1] Group 1: Performance and Expectations - PubMatic's Q4 results surpassed expectations in both revenue and adjusted EBITDA, indicating a positive shift in performance [1] - The firm anticipates that revenue and earnings will return to growth in Q3, suggesting a recovery trajectory for the company [1] Group 2: Market Conditions and Valuation - The stabilization of DSP disruption is seen as a positive factor for the company's outlook [1] - Q4 is expected to benefit from a political advertising kicker, which could further enhance revenue [1] - Shares of PubMatic are considered "dirt cheap," indicating a favorable valuation perspective [1]

Financial Data and Key Metrics Changes - The company reported a strong fourth quarter with revenue and adjusted EBITDA exceeding guidance, achieving an adjusted EBITDA margin of 35% [6][23] - For the full year, revenue from Connected TV (CTV) grew over 50% year-over-year, while emerging revenues nearly doubled, now representing nearly 10% of total revenues [7][24] - Adjusted EBITDA for Q4 was $27.8 million, with GAAP net income of $6.7 million or $0.14 per diluted share [31] Business Line Data and Key Metrics Changes - CTV, mobile app, and emerging revenues were the main growth drivers, with emerging revenues growing over 75% year-over-year in Q4 [23][27] - The mobile app business delivered over 25% year-over-year revenue growth in Q4, reflecting strategic partnerships and product innovation [26] - Display revenues returned to growth in the mid-single digits, with a notable 20% growth excluding legacy DSP revenues [28] Market Data and Key Metrics Changes - The Americas experienced an 18% decline in revenue, primarily due to political advertising spend reductions, while APAC and EMEA grew over 25% and 15% respectively [29] - The top 10 ad verticals grew nearly 10% year-over-year, with strong growth in shopping, health and fitness, and technology sectors [28] Company Strategy and Development Direction - The company is focused on a five-year roadmap aimed at re-accelerating growth, expanding margins, and enhancing shareholder value, with a strong emphasis on AI-driven solutions [8][21] - The introduction of Agentic AI is seen as a transformative opportunity, with expectations that 25% of digital advertising will be executed autonomously by 2028, increasing to 50% by 2030 [11][12] - The company is diversifying its buyer mix and has integrated with 50 new DSP partners, focusing on mid-market advertisers [15][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture growth opportunities in the evolving digital advertising landscape, particularly through AI [21][37] - The company anticipates returning to double-digit revenue growth in the second half of 2026, supported by disciplined investments and increased efficiencies from AI [35][36] - The balance sheet remains strong, with $145.5 million in cash and no debt, allowing for flexibility in investments and capital returns [32][37] Other Important Information - The company has made significant progress in AI adoption, with over 40% of new code written by AI in the second half of 2025, enhancing productivity [20] - The company has a disciplined capital allocation strategy, focusing on long-term shareholder value creation and returning capital through share repurchase programs [32] Q&A Session Summary Question: Role of Amazon in the ad tech chain - The company collaborates with Amazon as one of three SSPs in their Certified Supply Exchange program, monetizing streaming inventory and expanding ad demand [45][46] Question: Structural assets differentiating PubMatic - The company highlighted its deep customer integrations, proprietary infrastructure, and the ability to innovate rapidly without dependence on third parties as key differentiators [52][54] Question: Outlook on agentic advertising and its impact - Management believes agentic advertising will streamline the industry, potentially reducing fees and bringing the supply and buy sides closer together [61][62] Question: Drivers of upside in Q4 - Key growth areas included emerging revenues, mobile app, and CTV, all of which exceeded expectations [73][74] Question: DSP diversification strategy - The company is focused on expanding its DSP mix to control more of its revenue sources and reduce reliance on a few large providers [79][81]

Financial Data and Key Metrics Changes - The company reported a strong fourth quarter with revenue and adjusted EBITDA exceeding guidance, achieving an adjusted EBITDA margin of 35% [23][31] - For the full year, revenue from CTV grew over 50% year-over-year, while emerging revenues nearly doubled, now representing nearly 10% of total revenues [7][24] - Adjusted EBITDA for Q4 was $27.8 million, with GAAP net income of $6.7 million or $0.14 per diluted share [31] Business Line Data and Key Metrics Changes - The remainder of the business, excluding political revenues, grew 18% year-over-year, representing 83% of revenue in Q4 [23] - Emerging revenues grew over 75% year-over-year, accounting for roughly 12% of total revenues [27] - The mobile app business delivered over 25% year-over-year revenue growth in Q4, while display revenues returned to mid-single-digit growth [26][28] Market Data and Key Metrics Changes - The APAC and EMEA markets grew rapidly at over 25% and 15% respectively, while the Americas experienced an 18% decline primarily due to political advertising [29] - The top 10 ad verticals grew nearly 10% year-over-year, with strong growth in shopping, health and fitness, and technology sectors [28] Company Strategy and Development Direction - The company is focused on a five-year roadmap aimed at re-accelerating growth, expanding margins, and enhancing shareholder value, with a strong emphasis on AI-driven advertising solutions [8][21] - The strategy includes diversifying the buyer mix, expanding partnerships with DSPs, and enhancing capabilities in CTV and mobile advertising [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of agentic AI, predicting that by 2028, 25% of all digital advertising will be executed autonomously via this technology [11] - The company anticipates returning to double-digit revenue growth in the second half of 2026, supported by disciplined investments and increased efficiencies from AI [35][37] Other Important Information - The company generated $81 million in net operating cash flows in 2025, a 10% increase over 2024, and delivered free cash flow of $46 million, a 32% increase [31][32] - The balance sheet remains strong with $145.5 million in cash and zero debt, allowing for flexibility in investments and capital returns [32][37] Q&A Session Summary Question: Role of Amazon in the ad tech chain - The company collaborates with Amazon as one of three SSPs in their Certified Supply Exchange program, monetizing streaming inventory through various apps and expanding inventory available to buyers [45][46] Question: Structural assets differentiating PubMatic - The company highlighted its deep customer integrations, proprietary infrastructure, and the ability to innovate rapidly without dependence on third parties as key differentiators in the ad tech space [52][54] Question: Outlook on agentic AI and its impact - Management indicated that agentic AI will streamline the advertising process, potentially reducing fees and bringing the supply and buy sides closer together, enhancing overall efficiency in the ecosystem [61][62]

Financial Data and Key Metrics Changes - The company reported exceptionally strong fourth-quarter results with revenue and adjusted EBITDA exceeding guidance, achieving an adjusted EBITDA margin of 35% [21][29] - For the full year, revenue from the remainder of the business (excluding political revenues and legacy DSP) grew 18% year-over-year, representing 83% of total revenue in Q4 [21][29] - Free cash flow increased by 32% compared to 2024, reaching $46 million, while net operating cash flows rose by 10% to $81 million [29][30] Business Line Data and Key Metrics Changes - Connected TV (CTV) revenue grew over 50% year-over-year, while emerging revenues, including Activate and new AI solutions, nearly doubled and now account for nearly 10% of total revenues [5][24] - Mobile app revenue delivered over 25% year-over-year growth, reflecting ongoing product innovation and strategic partnerships [24] - Display revenues returned to mid-single-digit year-over-year growth, with a notable 20% increase when excluding the legacy DSP [25] Market Data and Key Metrics Changes - The Americas experienced an 18% decline in revenue primarily due to political advertising, while APAC and EMEA markets grew over 25% and 15% respectively [27] - The top 10 ad verticals grew nearly 10% year-over-year, with strong growth in shopping, health and fitness, and technology sectors [25] Company Strategy and Development Direction - The company is focused on a five-year roadmap aimed at re-accelerating growth, expanding margins, and enhancing shareholder value, with a strong emphasis on AI-driven solutions [6][19] - The introduction of Agentic AI is seen as a significant opportunity, with expectations that by 2028, 25% of digital advertising will be executed autonomously via Agentic AI [9][10] - The company aims to diversify its buyer mix by integrating with 50 new DSP partners, targeting mid-market advertisers as a fast-growing segment [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture growth opportunities in the evolving digital advertising landscape, particularly through AI adoption [20][34] - The company anticipates returning to double-digit revenue growth in the second half of 2026, supported by disciplined investments and increased efficiencies from AI [32][35] - Management highlighted the importance of maintaining a strong balance sheet, with $145.5 million in cash and no debt, allowing for flexibility in investments and capital returns [30][35] Other Important Information - The company has made significant progress in operational efficiency through AI, with over 40% of new code written by AI in the second half of 2025 [18] - The company has a disciplined capital allocation strategy, focusing on long-term shareholder value creation and returning capital through a share repurchase program [30] Q&A Session Summary Question: Role of Amazon in the ad tech chain - The company collaborates with Amazon as one of three SSPs in their Certified Supply Exchange program, monetizing streaming inventory and expanding ad demand [41][42] Question: Structural assets differentiating PubMatic - The company highlighted its deep customer integrations, proprietary infrastructure, and the ability to innovate rapidly without dependence on third parties as key differentiators [48][50] Question: Outlook on agentic AI and its impact - Management believes agentic AI will streamline the advertising ecosystem, potentially reducing fees and bringing the supply and demand sides closer together [59][60] Question: Drivers of upside in Q4 - Key growth areas included emerging revenues, mobile app, and CTV, all of which exceeded expectations [71][72] Question: DSP diversification strategy - The company emphasized the importance of diversifying its DSP partnerships to control its growth trajectory and reduce reliance on a few large providers [76][80]

Q4 and FY 2025 Earnings Presentation This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other ...